CABR press release

Today from the Cincinnati Area Board of Realots (CABR).

 

 

The $8,000 federal home tax credit program – now in place – continues to drive home sales.  Local home buyers, for the third month in a row, bought more homes than a year ago. Sales in August totaled 1,812 units compared to 1,776 sales in August 2008.

Nationally, homes sales last month were 3.4% higher than a year ago.

In addition to the tax credit program, other factors favoring current home buying include favorable mortgage rates – about 5.3% for a 30-year fixed rate loan, a good inventory of homes to choose from, and favorable home prices.

“Prospective buyers who want to take advantage of the tax credit shouldn’t wait,” said Paul

Jacob, president of the Cincinnati Area Board of Realtors The tax credit program expires Nov. 30. But a sale must close by that date. It generally takes 60 days — when financing is involved — to close on a sale from the time the contract is executed between buyer and seller. That means financing-backed sales should take place by the end of September, in order for eligible buyers to benefit from the tax credit.

Jacob said that multiple offers on the same property for sale are happening again. “That hasn’t occurred in a while,” he remarked. That speaks highly for increased housing demand Housing inventory locally is now at 7.52 months. That’s the amount of time it would take to sell all homes for sale that are currently on the market based on August selling activity. A year ago, it was 9.23 months. A lower number is better for sellers (more demand for fewer homes); a higher number is better for buyers (more homes to choose from).

 

For more information on the tax credit you can check out my previous post here.  If you are thinking of buying and want to take advantage of the tax credit, get a move on!  You are going to be out of time very soon.

Here’s how the numbers break down:

                                    Closings             Gross Volume              Average Price

August 2009            1,812               $293,085,132              $161,747

August 2008            1,776              $293,007,671             $164,982

Variance                    +2.03%              +0.03%                          -1.96%

___________________________________________________

                                    Closings             Gross Volume               Average Price

Jan-Aug 2009         12,282             $1,851,391,653           $150,740

Jan-Aug 2008         13,166             $2,206,767,736         $167,611

Variance                     -6.71%                 -16.10%                        -10.07%